Huawei's 2023 Revenue Reaches CNY 704.2 Billion, Marking a 9.63% Year-on-Year Growth

Technology Author: EqualOcean News, Jiahui Liao Editor: Yiru Qian Apr 01, 2024 04:40 PM (GMT+8)

Having overcome numerous challenges, Huawei has entered a phase of growing revenues across its various business operations.


On March 29, Huawei released its annual report for 2023, revealing that the company achieved a global sales revenue of CNY 704.2 billion, with a net profit of CNY 87 billion.

The report indicates that the company's overall performance met expectations, with its ICT infrastructure business maintaining stability, terminal business meeting expectations, and substantial growth in cloud computing and digital energy sectors. Additionally, the smart car solutions business has begun to enter the phase of large-scale delivery.

In terms of specific business segments, Huawei witnessed growth across all sectors. In 2023, the company's ICT infrastructure business achieved sales revenue of CNY 362 billion, marking a 2.3% year-on-year growth; terminal business achieved sales revenue of CNY 251.5 billion, a 17.3% year-on-year growth; cloud computing business achieved sales revenue of CNY 55.3 billion, a 21.9% year-on-year growth; and digital energy business achieved sales revenue of CNY 52.6 billion, a 3.5% year-on-year growth. Furthermore, Huawei's smart car solutions business saw sales revenue of CNY 4.7 billion, representing a 128.1% year-on-year growth.

Huawei's rotating chairman, Hu Houkun, commented on the performance, stating, "The overall operational performance of the group in 2023 met expectations. Over the past few years, Huawei has faced numerous challenges and has continued to grow amidst these challenges. It is the trust and support of customers, partners, and all sectors of society that have helped Huawei survive and develop."

The annual report also revealed that in 2023, Huawei's smart car solutions business revenue reached CNY 4.77 billion, a 128% increase compared to 2022's CNY 2.077 billion, accounting for 0.6% of Huawei's total revenue, up from 0.3% in 2022.

The improved profitability of Huawei's automotive business is directly driven by the strong sales of the AITO New M7 under the Smart Selection Car business. In 2023, the Smart Selection Car business was fully upgraded to Harmony, with a total delivery of over 90,000 vehicles throughout the year, including the AITO M9, AITO New M7, and the first pure electric sedan, LUXEED S7. As of the end of February this year, the cumulative delivery of the AITO New M7, which has been on the market for 170 days, has exceeded 100,000 vehicles. In addition, since the launch of the AITO M9 at the end of 2023, the cumulative large orders have also exceeded 50,000 vehicles. In comparison, the LUXEED S7 is still in a sluggish state.

Huawei's Smart Selection mode has seen a continuous increase in the number of partner automakers. Currently, four enterprises, namely SERES, Chery, BAIC and JAC, have collaborated with Huawei to create four brands: AITO, LUXEED, STELATO and AoJie(unreleased). Under the Smart Selection mode, Huawei deeply involves itself in product definition, core component selection, and marketing service systems of the partner automakers. Furthermore, collaborative models are sold through Huawei's retail outlets.

In addition to the Smart Selection mode, Huawei also collaborates with automakers through the HI (Huawei Inside) mode and the supplier mode. The HI mode involves the use of Huawei's full-stack intelligent automotive solutions, encompassing computing and communication architecture, intelligent cockpit, and autonomous driving technologies. Apart from Changan's AVATR and DEEPAL, which have already integrated Huawei's HI, this year, Dongfeng's VOYAH and Brave warrior will also join the HI camp.

Huawei has significantly increased its R&D investment, with a 2023 R&D expenditure of CNY 164.7 billion, accounting for 23.4% of the sales revenue, a CNY 32 billion increase from the previous year and reaching a historical high. In 2022, Huawei's R&D expenditure was CNY 161.5 billion. The cumulative R&D expenditure over the past decade has surpassed CNY 1.11 trillion. Reportedly, Huawei's R&D expenditure will primarily focus on technological research and ecosystem development in areas such as HarmonyOS, Kunpeng, Ascend, and cloud services.

In the international market, Huawei Cloud continues to accelerate the construction of a "global one network", aiming to provide a globally consistent high-quality cloud service experience. Huawei Cloud adheres to a "local for local" approach, delivering leading innovative technology and localized services to enable digital transformation across various industries. In 2023, Huawei Cloud experienced rapid growth in overseas regions including Asia-Pacific, Latin America, the Middle East, Africa, and Europe, establishing itself as a trusted cloud service brand for customers.

Looking ahead to 2024, Hu Houkun stated that a new journey has begun, emphasizing their commitment to open innovation, ecological prosperity, and a focus on quality.